A state famous for its taxes is giving residents the rare opportunity to save money on tax penalties.
MA Tax Amnesty is now in effect and is a one-time opportunity for both Massachusetts individuals and businesses to catch up on back taxes and avoid paying penalties and the interest accrued on those penalties.
If you have not filed returns and owe back taxes, this program will allow you to:
· File delinquent returns or amend prior tax filings
· Pay only the tax and interest you owe
· Benefit from a three-year limited look-back period
Checkout out this chart from the DOR website highlighting how much you could save:
Eligibility
Those eligible to participate in the amnesty program include any individual or business who has not currently registered with the DOR, who has not filed a tax return, or who has not reported the full amount of tax owed on a previously filed return for any tax return due on or before December 31, 2015.
Amnesty is not available to individuals or businesses who have been the subject of a tax-related criminal investigation or prosecution. Also, taxpayers who participated in the 2014 or 2015 tax amnesties are not eligible for the same tax types or tax periods (no-redoes).
What if You Don’t Participate?
· You may be assessed double the amount of tax due and other penalties.
· You’ll lose the limited look-back period on un-filed returns. There is no statute of limitation on un-filed returns.
· You may risk up to a six-year audit period on a previously filed return if certain under-reporting criteria are identified.
· You will face escalating enforcement efforts, including potential criminal prosecution.
How to Participate
More information on the MA Tax Amnesty program is available on the DOR website and a simple online amnesty return is available here.
If you have any questions regarding this news or how to prepare for the MA Tax Amnesty 2016 program, feel free to contact Chris O’Day at (857) 226-5866.
